Armenian securities to become available for investors from around the world

13.10.2015 18:29

YEREVAN, October 13. / ARKA /. Armenian securities (government bonds for the time being) will be available for investors from around the world, Konstantin Saroyan, the director of NASDAQ OMX Armenia stock exchange, said in an exclusive interview with ARKA. He said this became possible thanks to securities nominee account opened with Clearstream Banking Luxemburg of Clearstream Deutsche Börse Group a few years ago.

He explained that introduction of link with Clearstream Banking Luxembourg provides Armenian investors with opportunity to invest in securities of 53 developed and developing countries around the world, while the Central Depository of Armenia (CDA) ensures servicing of transactions, registry keeping and custody, including registration of ownership rights towards foreign securities.

He said another agreement was signed this year to launch the reverse link, which opens access for foreign investors to Armenian securities through the Clearstream Banking. Thus, Armenian securities (in the first stage they are government bonds) will be available to investors worldwide.
Saroyan explained that now foreign investors can buy Armenian bonds without opening an account in Armenia. A bank account in Clearstream or in a counteragent bank is enough.

"This is a very serious step, because only larger countries have direct links with Clearstream or the European Bank . This is an unprecedented move on part of Clearstream Bank – to enter our region. It has an agreement also with Georgia," he added.

According to Saroyan, new opportunities will revitalize local issuers, while foreign investors will start scrutinizing Armenian securities market. As a result, the growing demand will trigger bigger supply.

Clearstream Banking SA is a settlement and clearing organization based in Luxembourg and Frankfurt.

It provides storage of securities, as well as clearing and settlement of securities transactions (stocks, bonds and shares of investment funds). It was formed in 2000 through the merger of Cedel and the clearinghouse Deutsche Boerse Clearing; On July 2002 it came under the full control of Deutsche Boerse AG. The system consists of three divisions: Clearstream Banking Frankfurt, Clearstream Banking Luxembourg and Clearstream Services.

The Central Depository of Armenia (CDA ), the only centralized custodian and registrar in Armenia, is a subsidiary of NASDAQ OMX Armenia and part of NASDAQ OMX Group Inc. ($ 1- 473.99 drams). -0-